Cyprus Leaders Agree on Austerity Deal

By

Joe Parkinson

Updated July 22, 2011 4:21 p.m. ET

NICOSIA, Cyprus—The government of Cyprus and opposition parties said they brokered a deal to pass a series of austerity measures, in a bid to ease market fears that an escalating economic crisis and exposure to Greek banks could see the country added to the list of euro-zone nations seeking financial aid.

The heads of the six main political parties one-by-one left their meeting at the presidential palace, hailing the agreement, which...